Nominal:(of a price, consideration, etc.) named as a mere matter of form, being trifling in comparison with the actual value;minimal.
The now rarely heard from Alliance Bernstein Economist Joe Carson, who I had the luxury of working with at Dean Witter (whatever happened to Reynolds?), taught me a simple parlor trick to amuse your sotted party guests. At, or near equilibrium the nominal 5 year note yield should approximate the real GDP print. One could always weigh in at the neighborhood pot-luck with cheerful (or morbid) economy calls knowing just the yield on "The Cinco." This knowledge became the basis for my Fed Funds equilibrium model years later. By having a calibration of "equilibrium" one can judge prevailing market observations to the standard and trade accordingly.
The data today show the distortion in term structure to economic growth to be severe. The 1.4% GDP figure is now tracking the 10 year Government Note. This distortion has consequences beyond red faced rants about fiscal cliffs and quantitative easing voodoo. The new alignment- if it holds (more on that in a minute) suggests time, over 1800 days of time, is no longer relevant in economic decision making. By breaking the decade into forward segments and valuing them as zero coupons (that's called a Eurodollar futures strip btw) we can see the entrenching malaise. 5 year 5 year forwards, or tips also support this view. At 99.40+ the "green pack" has an implied yield just behind the 5 year at 59bps.
So, either the old metric shines through and we can look forward to a significant reduction in the GDP report, or the new "Long Malaise Metric" points to a lost half-decade. Now, tell me again why more should not be done?